The Clock is Ticking on Congress to Act on Social Security
We are about halfway through the current legislative session and lawmakers are no closer to enacting measures to secure Social Security solvency. With each passing day, the situation grows more concerning to everyday Americans counting on Social Security to help fund their retirement.
According to the Center on Budget and Policy Priorities, since 2021 Social Security has been drawing down trust fund reserves to help pay for benefits. If nothing changes, the agency’s trust funds will be depleted by 2034, at which time it will no longer be able to pay full benefits. Retirement benefits will likely be cut by at least 20 percent.
This comes as no surprise. Lawmakers have long known that funding was an issue. The Social Security Administration (SSA) reports that over the years “policymakers have developed proposals and options that have financial effects on the OASDI Trust Funds. Many of these proposals and options have the intent of addressing the long-range solvency problem.” In fact, their website lists more than 100 proposals introduced since 1993.
A Strong Solution
The Seniors Trust stands behind the Social Security Expansion Act introduced by U.S. Sen. Bernie Sanders (I-Vt.). Not only would it ensure the long-term solvency of Social Security, but it would also provide seniors with bigger benefits.
Under this bill, seniors would receive an extra $2,400 in benefits each year. In addition, it would recalculate the way the Social Security cost-of-living-adjustment (COLA) is calculated, using the Consumer Price Index for the Elderly (CPI-E) instead of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The CPI-E more accurately reflects the actual spending of seniors, which tends to be on expenses such as healthcare and housing.
To fund the proposed benefits boost and maintain solvency far into the future, the Social Security Expansion Act calls for applying the Social Security payroll tax on all income above $250,000. Currently, earnings above $160,200 aren’t subject to the Social Security tax.
If enacted, the Social Security Expansion Act could keep Social Security solvent for about 75 years.
Join Our Efforts
The Seniors Trust believes the Social Security Expansion Act seeks to reform Social Security the right way: by expanding and strengthening benefits proven to reduce senior poverty and improve retirement security as well as extending the solvency of this crucial program.
Please, sign our petition to Congress and join us as we strive to improve the lives of senior citizens.
